Wealth Conscious Constitution

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If all your dreams came true, what would your life look like? Many wish to become financially RICH as though it would completely fill the void in their hearts. As one ages, you may come to understand the frequency and value of money, what it offers and also what it can and cannot provide. Money can definitely give you freedom to consume more material things, travel and experience the best that life has to offer. You will even attract more people who will view you as successful and interesting whether they know the real you or not. Being financially RICH cannot, however, guarantee you WEALTH – – health, peace of mind, love, purpose, sense of community, mental health, authentic relationships or being emotionally and spiritually filled in your core. So, what triggered this blog post today? 

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First, the US Internal Revenue Service recently issued to more than 35 million U.S. households, with nearly 60 million children 17 years or younger, monthly cash payments for their 2021 child tax credits. An eligible family with three young children, for example, could receive up to $900 per month for the rest of the year. The first round of payments comes to about $15 billion, according to the Biden administration. While the payments will help some families greatly (especially after 2020) they could also bring unexpected tax bills in 2022. Tax filers who are eligible for the prepayments could see far smaller refunds or larger tax bills next year because they are getting half their child credits up front. For this reason, taxpayers who get half the payments could come up short and owe the IRS at tax time. According the IRS, about 1 million filers have already opted out of the prepayments. Hopefully, all the families receiving the early payments understand the strings attached to the funds and use the payments prudently. As Dave Chappelle might say  “not all money is good money” so be careful what you accept.

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The second reason for this post is related to a story about a wealthy and popular rapper and his frugal but prudent actions. Rick Ross, aka Ricky Rozay who is known for his luxury lifestyle and his big-money BOSS boasts, recently showed his fiscal responsible outlook on spending. He made it known that he makes most of his investments in real estate instead of the more volatile stock market after following the advice of his hard working mother who held multiple jobs throughout his early childhood. She also invested in real estate (on a much smaller scale than Mr. Ross) whenever the opportunity presented for her to do so. In addition, Mr. Ross buys antiques at swap meets rather than spend a lot on decorating, flies commercial instead of owning a private jet and rents his mansion, previously owned by heavyweight boxing champ Evander Holyfield, out for movies. Most recently, the Coming To  America 2 film, featuring the legendary comedian Eddie Murphy, used his property for the movie. Mr. Ross even cuts his own grass at the mansion. Now isn’t that interesting?

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Flex Culture is about being seen with goods that are known to be expensive to show that you can afford them. Wearing these brands gives people some kind of status which is assumed to be a good one.

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Both of the financial scenarios mentioned above (Tax Credit and Rick Ross) triggered me to remember a book I read in my youth called the Millionaire Next Door – The Surprising Secrets of America’s Wealthy written by Thomas Stanley and William Danko (published in 1996). The authors compare the behavior of those they call “UAWs” (Under Accumulators of Wealth) and those who are “PAWs” (Prodigious Accumulators of Wealth). Their research indicated that millionaires are disproportionately clustered in middle-class and blue-collar neighborhoods and not in more affluent or white-collar communities. These results came as a surprise to the authors who anticipated the contrary. Stanley and Danko’s book explains that high-income white-collar professionals are more likely to devote their income to luxury goods or status items, thus neglecting savings and investments. Perhaps, new research would produce much more different findings in our current “Flex Culture” infecting both the working class and the wealthy especially young people within each group. In addition, research has shown that America does indeed have a “caste system”  where the rich get richer, the so called middle class has shrunk considerably since 1996, and many families in poverty remain consistently stuck without much CHANGE or movement towards generational wealth.

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Secrets of the Rich 

Spend less than you earn

Avoid buying status objects or leading a status lifestyle

Take financial risks if it is worth the reward

Generational wealth

Millionaire Next Door

In no way am I suggesting in this post that having access to money is not important. It provides the means for which we all can live, eat and survive in this world. Being in poverty is not a preferred or glorified state of existence either. Nor should we support being a “schadenfreude” (modern day hater who takes pleasure derived from another person’s misfortune). The only question is whether financial RICHNESS (materialism – – greed is good mentality) should be the main standard for which we judge or value a person or a society.

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“If you have peace of mind you have everything.” 

TK Kirkland – Stand-up Comedian, Podcast Host, Writer and Agent Provocateur

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My tribe knows that I personally like to float below the radar – – frugal, not impressed with designer labels for the sake of having them or items that lose value soon after purchase, etc. This does not mean that I do not have or appreciate some luxury items. I’m simply somewhere in the middle – – valuing being WEALTHY in mind, body and spirit with some ability to enjoy the occasional luxury or frivolity (but not at the expense of forgetting what has long term value). The ideas contained in the Millionaire Next Door still resonate even today reflecting the current state of our collective unconscious societal challenge. Once you are introduced to new ideas or faced with real financial issues (remember the 2008 economic down turn), it it amazing just how they can influence and CHANGE your thinking not just in the moment but for an entire life time.

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